SB 215, as amended, Beall. Public employees’ retirement.
(1) Existing law provides that the Public Employees’ Retirement System (PERS) is governed by its board of administration (board) and prescribes the composition of the board. Existing law requires the retirement fund of PERS to reimburse an employing agency that employs an elected member of the board and that employs a person to replace the member during attendance at meetings of the board, among other times, for the direct and reasonable costs incurred by employing a replacement.
This bill would recast these provisions to provide that the employing agency be reimbursed, as specified, without regard to whether it replaces the elected member.
(2) Existing law authorizes the board to sell exchange-traded call options only through an exchange, and only with respect to stock owned by the system, as specified.
This bill would repeal these provisions.
Existing law permits a person entitled to a benefit from PERS to request that payment be made by an electronic fund transfer, as specified. Existing law prohibits the board from sending a copy of benefit payment information to any person who has had payment made by electronic fund transfer or by mail, as specified, if the board has received a written request from that person that it not be sent.
This bill would authorize the board to make available, in a manner it determines appropriate, copies of the monthly benefit payment information electronically and by mail. The bill would require the board, if it does not elect to mail copies of this payment information, as specified, to all or some of the people receiving monthly benefit payments, to notify people of their right to request that a copy of the benefit payment information be mailed. The bill would require the board to mail the information upon receiving a written request to do so.
Existing law, the Public Employees’ Medical and Hospital Care Act (PEMHCA), authorizes the board to enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans. Existing law specifically authorizes the board to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. Existing law authorizes a contracting agency and its employees and annuitants to elect to be subject to PEMHCA upon filing with the board a resolution of its governing body, as specified. Existing law authorizes the board, by regulation, to establish requirements for a contracting agency that elects to become subject to PEMHCA.
This bill would provide that a contracting agency and its employees and annuitants may obtain a health benefit plan, as defined, subject to board approval of a resolution submitted by the governing body. The bill would authorize the board to refuse to contract with, or to agree to an amendment proposed by, any contracting agency for benefit provisions that are not specifically authorized by PEMHCA and that the board determines would adversely affect the administration of this system. Among other things, the bill would permit the board to require the contracting agency to enter into a contract with the board in this regard. The bill would require that the approval of the contract be by affirmative vote of a majority of the members of the relevant governing body.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 20092 of the Government Code is
2amended to read:
Each employing agency that employs an elected
4member of the board shall be reimbursed by the retirement fund
5in an amount equal to the salary and benefits paid to the elected
6board member by the employing agency for the percentage of the
7elected board member’s regular work schedule during which the
8elected board member is on leave from the employing agency to
9attend meetings or activities of the board, or meetings of
10committees or subcommittees of the board, or when serving as
11president or vice president of the board or chair or vice chair of a
12committee or subcommittee of the board, or when carrying out
13other powers or duties as may be approved by the board, or to
14otherwise fulfill his or her responsibilities to the system.
Section 20204 of the Government Code is repealed.
Section 21269 of the Government Code is amended
(a) Any person entitled to a benefit from this system
19may request that payment be made by deposit by electronic fund
P4 1transfer in the person’s bank, savings and loan association, or credit
3(b) If deposit pursuant to subdivision (a) is not available, deposit
4may be made by mail in the person’s bank, savings and loan
5association, or credit union account.
6(c) Mailing of the warrant or electronic fund transfer is a full
7discharge of the board and this system.
8(d) The board shall make available, in a manner it determines
9 appropriate, copies of the monthly benefit payment information
10 electronically or by mail.
11(1) If the board elects to mail copies of this payment information
12to all or a portion of persons receiving monthly benefit payments,
13it shall not send a copy of the benefit payment information to any
14person who has had payment made by electronic fund transfer or
15by mail pursuant to subdivision (a) or (b), if the board has received
16a written request from that person that it not be sent.
17(2) The board shall notify persons subject to this section, in the
18monthly benefit payment notice, of their right to request that no
19copy of the benefit payment information be mailed, pursuant to
21(3) If the board does not elect to mail copies of this payment
22information to all or a portion of persons receiving monthly benefit
23payments, it shall notify a person subject to this section of his or
24 her right to request that a copy of the benefit payment information
25be mailed. The board shall mail a copy of the benefit payment
26information if the system has received a written request to do so
27from that person.
Notwithstanding any other provision of this
31part, a member who elected to receive optional settlement 2, 3, or
324, involving a life contingency of the beneficiary, may, if the
33beneficiary predeceases the member or if the member marries and
34the former spouse was not named as beneficiary, or, if a former
35spouse was named, in the event of a dissolution or annulment of
36the marriage or a legal separation in which the judgment dividing
37the community property awards the total interest in the retirement
38system to the retired member, elect to have the actuarial equivalent
39reflecting any selection against the fund resulting from the election
40as of the date of election of the allowance payable for the remainder
P5 1of the member’s lifetime under the optional settlement previously
2chosen applied to a lesser allowance during the member’s
3remaining lifetime under one of the optional settlements specified
4in this article and name a different beneficiary.
begin deleteTheend delete
10 election shall be
made within 12 months following the
11death of the beneficiary who predeceased the member or within
1212 months of the date of entry of the judgment dividing the
13community property of the parties, or within 12 months following
14marriage if the spouse is named as beneficiary. The election shall
15become effective on the date specified on the election, provided
16that this date is not earlier than the day following receipt of the
17election in this system pursuant to this section.
18 Aend delete
member who has a qualifying event prior to January 1,
201988, and who fails to elect by January 1, 1989, or a member who
21has a qualifying event on or after January 1, 1988, and who fails
22to elect within 12 months, shall retain the right to make an election
23under this section. However, this election shall become effective
24no earlier than 12 months after the date it is filed with the board,
25provided that neither the member nor the designated beneficiary
26die prior to the effective date of the election.
27 Thisend delete
section shall not be construed to mean that designation
29of a new beneficiary causes the selection of an optional settlement.
30An optional settlement shall be selected by a member in a writing
31filed by the member with the board.
Section 22850 of the
Government Code is amended
(a) The board may, without compliance with any
36provision of law relating to competitive bidding, enter into
37contracts with carriers offering health benefit plans or with entities
38offering services relating to the administration of health benefit
P6 1(b) The board may contract with carriers for health benefit plans
2or approve health benefit plans offered by employee organizations,
3provided that the carriers have operated successfully in the hospital
4and medical care fields prior to the contracting for or approval
5thereof. The plans may include hospital benefits, surgical benefits,
6inpatient medical benefits, outpatient benefits, obstetrical benefits,
7and benefits offered by a bona fide church, sect, denomination, or
8organization whose principles include healing entirely by prayer
9or spiritual means.
10(c) Notwithstanding any other provision of this part, the board
11may contract with health benefit plans offering unique or
12specialized health services.
13(d) The board may administer self-funded or minimum premium
14health benefit plans.
15(e) The board may contract for or implement employee cost
16containment and cost reduction incentive programs that involve
17the employee, the annuitant, and family members as active
18participants, along with the carrier and the provider, in a joint effort
19toward containing and reducing the cost of providing medical and
20hospital health care services to public employees. In developing
21these plans, the board, in cooperation with the Department of
22Human Resources, may request proposals from carriers and
23certified public employee representatives.
24(f) Notwithstanding any other provision of this part, the board
25may do any of the following:
26(1) Contract for, or approve, health benefit plans that charge a
27contracting agency and its employees and annuitants rates based
28on regional variations in the costs of health care services.
29(2) Contract for, or approve, health benefit plans exclusively
30for the employees and annuitants of contracting agencies. State
31employees and annuitants may not enroll in these plans. The board
32may provide health benefit plans exclusively for employees and
33annuitants of contracting agencies in addition to or in lieu of other
34health benefit plans offered under this part pursuant to Section
36(3) Implement and administer risk adjustment procedures
37consistent with Section 22864 that require health benefit plans to
38adjust premiums and authorize the system to redistribute premiums
39based on rules and regulations established by the board for this
P7 1(g) The board shall approve any employee association health
2benefit plan that was approved by the board in the 1987-88 contract
3year or prior, provided the plan continues to meet the minimum
4standards prescribed by the board. The trustees of an employee
5association health benefit plan are responsible for providing health
6benefit plan administration and services to its enrollees.
7Notwithstanding any other provision of this part, the California
8Correctional Peace Officer Association Health Benefits Trust may
9offer different health benefit plan designs with varying premiums
10in different areas of the state.
11(h) Irrespective of any other provision of law, the sponsors of
12a health benefit plan approved under this section may reinsure the
13operation of the plan with an admitted insurer authorized to write
14disability insurance, if the premium includes the entire prepayment
Section 22920 of the
Government Code is amended
The following entities are eligible to obtain a health
20benefit plan, as defined in Section 22777, subject to board approval:
21(a) A contracting agency, as defined in Section 20022, a county
22or special district subject to the County Employees Retirement
23Law of 1937 (Chapter 3 (commencing with Section 31450) of Part
243 of Division 4 of Title 3), and a school employer.
25(b) A public body or agency of or within the state that is not
26subject to Part 3 (commencing with Section 20000) of the
27Government Code or the County Employees Retirement Law of
281937 (Chapter 3 (commencing with Section 31450) of Part 3 of
29Division 4 of Title 3), and that provides a retirement system for
30its employees funded wholly or in part by public funds.
31(c) The protection and advocacy agency described in subdivision
32(h) of Section 4900 of the Welfare and Institutions Code, if the
33agency obtains a written advisory opinion from the United States
34Department of Labor stating that the organization is an agency or
35instrumentality of the state or a political subdivision thereof within
36the meaning of Chapter 18 (commencing with Section 1001) of
37Title 29 of the United States Code.
Section 22922 of the
Government Code is amended
(a) A contracting agency and its employees and
2annuitants may obtain a health benefit plan, as defined in Section
322777, subject to board approval of a resolution submitted by the
4governing body electing to be so subject. The resolution shall be
5adopted by a majority vote and shall be effective at the time
6provided in board regulations.
7(b) In addition to, or in lieu of, submitting a resolution as
8prescribed in subdivision (a), the board may require the contracting
9agency to enter into a contract with the board to obtain a health
10benefit plan, as defined in Section 22777, for all or part of its
11employees, pursuant to rules and regulations developed by the
12board for this purpose.
13(c) The board may refuse to contract with, or to agree to an
14amendment proposed by, a contracting agency for any benefit
15provisions that are not specifically authorized by this part and that
16the board determines would adversely affect the administration of
18(d) A contracting agency may become subject to this part with
19respect to a recognized employee organization with which it has
20reached mutual agreement. The resolution and any contracts, or
21the resolution and contract required by subdivisions (a) and (b),
22shall specify the recognized employee organizations participating
23in this system.
24(e) Pursuant to Section 22796 and subdivision (g) of Section
2522934, the board may by regulation require any contracting agency
26that becomes subject to this part to meet certain board-determined
27criteria, including, but not limited to, additional requirements for
28any contracting agency that elects to become subject to this part
29that previously terminated coverage pursuant to Section 22938.
30(f) Approval of the contract to obtain a health benefit plan
31pursuant to subdivision (b) shall be by the affirmative vote of a
32majority of the members of the governing body of the contracting